A new console, new motion sensor technology – it is set to be a big year for Microsoft and Xbox. Here is our pick of the top Xbox trends to watch out for in 2012.

Xbox 720

As usual, the Tech world rumour mill has been in overdrive over the launch of the Xbox 720. The first proper console in over two years is due for release in 2012, we’re just not sure when.

Depending on whom you believe or which website your read, the Xbox 720 will be announced at either CES 2012 or E3 2012, or possibly neither.

But you can rest assured that, if all goes to plan and the Tech Gods answer our prayers, the console will be out in time for Christmas.

The latest reports have indicated that Microsoft plan on releasing not one but two versions of the 720. The aim is to cover as much of the market as possible, with one cheap version for casual gamers, and one pricey version for the more hardcore.

Kinect 2

Microsoft’s hugely successful motion sensor peripheral is likely to be bundled with the new console, and is rumoured to have a load of cool new features.

The USB connection on the current Kinect is going out the window, with the Kinect 2 getting a connection port of its very own. This will give the peripheral the fire-power it desperately needs.

The Kinect 2 is set to move into the future, with Microsoft saying it will be able to read user’s lips and even sense their emotions.

Xbox TV

Microsoft is moving into the on-demand world with a free upgrade for the current Xbox coming this month. The upgrade will allow users to access a wealth of TV and films, as well as Xbox Live games.

The amount of services will be fairly limited at first but new providers are coming on board all the time, meaning the on-demand service will grow and grow throughout 2012.

The service will also be integrated with Kinect, with users able to search for content, and pause and play video, just by asking.